Suttle Tax Hike: “No Sale” in Lincoln
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Nebraska Watchdog has learned that Omaha Mayor Jim Suttle’s plan to raise the city’s sales tax is falling on deaf ears at the State Capitol.
On Tuesday the Omaha City Council is expected to vote on Suttle’s plan, which would require the approval of the Nebraska State Legislature followed by a vote of the people in Omaha.
Suttle wants to raise the city sales tax by 0.5 percent to help solve the City of Omaha’s Police and Fire pension problem. Currently the sales tax in Omaha is 7 percent. 5.5 percent goes to the State of Nebraska and 1.5 percent to the City of Omaha.
But according to a survey by Nebraska Watchdog several Omaha lawmakers oppose any attempt to raise the sales tax.
Three of Suttle’s fellow Democrats, State Senators Tom White, Jeremy Nordquist and Heath Mello top the list of those opposed to raising taxes. Nordquist said, “Working families cannot afford additional taxes in this economy. White, who is running for Congress against Rep. Lee Terry (R-Nebraska), told Nebraska Watchdog’s Joe Jordan that raising the sales tax is a bad idea.
Several other Omaha lawmakers told Nebraska Watchdog that Suttle’s tax hike would be “dead on arrival” in Lincoln. Senator Scott Lautenbaugh said, “It (a sales tax increase) will not happen.”
Technically lawmakers would only be asked to allow voters in Omaha to decide if the city’s sales tax should go up. But Senator Brad Ashford and others still opposes the Mayor’s plan. Ashford said the real solution is a broader tax base which would lower taxes. Senators Beau McCoy, Pete Pircsh and Rich Pahls also opposed raising the sales tax.
Two lawmakers, Senators Tanya Cook and Gwen Howard told Nebraska Watchdog they were undecided.
State Senator Brenda Council said she believes Omaha voters, “…should be allowed to decide whether they want to increase the sales tax as a means of addressing the City budget.”
But with a majority of Omaha area senators lining up against the Mayor some lawmakers wonder why Suttle continues to pursue the tax increase.
The Mayor’s spokesman, Ron Gerard, told Nebraska Watchdog that Suttle wants to consider all the options suggested by the City’s Pension Reform Task Force. Those options include increasing the city sales tax, increasing the city’s garbage fee or higher property taxes.
Reported by Joe Jordan, joe@nebraskawatchdog.org
Posted under Featured, Omaha Government, State Politics, Uncategorized.
Tags: Brad Ashford, Brenda Council, Gwen Howard, Jeremy Nordquist, Jim Suttle, Pete Pirsch, Rich Pahls, Scott Lautenbaugh, Tom White
6 Comments For This Post So Far
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City Council Says No to Suttle Tax Plan
[...] Editor’s note: to see Nebraska Watchdog’s initial report on this issue click here. [...]
8:09 pm on November 9th, 2009
Interesting that only Brenda Council correctly understands and states that the Legislature would merely allow Omahans to vote. During Omaha’s budget town hall meetings many Omahans represented by these senators suggested they would prefer a small sales tax increase over additional property taxes or other taxes. Odd that some Senators seem to think they need to make the minds up for Omahans by not even allowing voters the opportunity to express an opinion. Of course we know special interests always oppose the sales tax increase and would rather see homeowners pay more in property taxes.
12:14 pm on November 10th, 2009
Suttle wants to raise the city sales tax by 0.5 percent to help solve the City of Omaha’s Police and Fire pension problem. Currently the sales tax in Omaha is 7.5 percent. 5 percent goes to the State of Nebraska and 1.5 percent to the City of Omaha.
Where does the extra 1 percent go
2:26 pm on November 10th, 2009
City Hall gave away to much to the Police and Fire Department and now they want the taxpayers to pay to clean up the mess. Our Citizens need to pay better attention to who they elect Mayor and to the City Council and pay attention to what they are doing. Look at the mess the last Mayor left us.
4:35 pm on November 10th, 2009
Hopefully, the many senators who are rightly opposing a higher sales tax in Omaha will also adamantly oppose another property tax increase in Omaha.
1:33 pm on November 11th, 2009
We all need to remember the majority of the pension shorfall was due to a bad market, not because of the mayor, the unions, or city council. The police union and the mayor’s office have already presented a plan that adresses one unions side of the fix. I am sure the fire union and the mayor’s office will reach a similar agreement. Now it is the cities turn to provide its 15 million as sugested by the pension task force. The sales tax option was one of the options sugested by the task force for the city to have this revenue. If the city council and state do not like this option I hope that they will favor another.